Brazil Leads Hotel Construction in Latin America
Hotel construction has stalled in Latin America according to a new report which saw a seventh consecutive quarterly dip in hotel projects going ahead.
With just 453 projects reaching development in Latin America, the 34 per cent decline has been significant since the peak in the first quarter of 2008.
One country that is bucking the trend is Brazil. With sport's two most prestigious competitions coming to Brazil in the next six years, hotel development is advancing at a rapid pace in anticipation of higher tourism levels.
Hotels in the Caribbean, Mexico and Central America are focusing on fewer, but larger hotel projects, with a greater emphasis on hotels of 200 rooms or more. In South America, projects are more spread out and tend to be smaller. 80 per cent of projects in South America were smaller than 200 rooms large.
A significant drop in revenue per available room (RevPAR) and a downturn in local economies has meant that fewer construction projects can go ahead. The good news for travellers is that the slack economy has forced hoteliers to drop prices, offering some superb holiday bargains on cheap hotels.
In 2014 Brazil will host the FIFA World Cup, followed two years later by the Olympic Games which will be held in Rio de Janeiro. Nearly a third of all hotel projects in Latin America and 28 per cent of the total rooms being built in the region are occurring in Brazil. The country has commissioned 133 projects that will create over 21,000 new rooms.
Hotels News posted by Benny Henson on 16 February 2010
Brazil hotels, hotel construction Latin America, caribbean hotels
http://www.traveldailynews.com/pages/show_page/35633-Total-hotel-projects-have-declined-34%25-in-Latin-America
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